Conservative Viewpoints

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Check ‘N Go payday lender gives $100,000 in settlement

Posted by Stephen on January 19, 2008

The nation’s second-largest payday lender is socked with a wide range of undisclosed charges.

As the Virginia General Assembly debates the future of the payday lending industry, one of the biggest lenders in Virginia has paid $100,000 to settle charges of massively violating state payday lending laws.

The Virginia State Corporation Commission will not reveal the details of the case against Check ‘N Go. But each violation of the state laws can carry a maximum $1,000 fine. That means the company was willing to settle the state charges by paying the equivalent of 100 violations fined at the maximum rate.

The state regularly audits the books and practices of payday companies, but this was the first major fine levied against one of the lenders. The SCC started looking at Check ‘N Go in June 2007, and eventually “found that it had violated various laws and regulations” that were not listed in the settlement document.

The settlement was entered into the SCC publicly-available case system last week, but the case was concluded late last year. The agency did not put out a press release, and SCC spokesman Ken Schrad said the commission didn’t want to make the case public at a time when policymakers were debating the business.

“The check was received on December 31st,” said Schrad. “More than likely, there was a lot of back and forth,” between the bureau and the company before a settlement was reached late in 2007.

A group of whistleblower former managers from Check ‘N Go, the nation’s second-largest payday lender, had previously alleged a list of legal violations that were part of that company’s standard practices. An anti-payday group called CapAmerica said on Thursday that whistleblowers helped the SCC build its case.
Kevin Wenzel is the Program Assistant/Web Content Coordinator for Virginia Poverty Law Center http://www.vplc. orgThe opinions expressed by editorial writers do not necessarily reflect those of management of Conservative Viewpoints.


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